USAA Insurance Review: Quotes For Car, Home Owner, Life & Renters

Recently, USAA received a perfect score for the overall satisfaction of the insurance itself. However, you may be wondering if it is the right choice for you. You can read this helpful USAA insurance review to find out the pros and cons and make an informed decision based on your particular needs.

Introduction

USAA is an automotive insurance company that is highly ranked in a variety of consumer surveys. For one, the company ended up getting a perfect score for Overall Satisfaction from the J.D. Power 2016 U.S. Auto Insurance Claim Satisfaction Survey.

One interesting thing about the company is that it offers investment and banking services, as well as its auto insurance. Therefore, if you are the type of person that likes to bundle a variety of services with a single provider, this could be an excellent option for you. For one, it makes it a lot easier for you to stay organized and pay bills because you only have one company with which to deal.

Of course, you can also choose to use the auto insurance service from the company and are not required to use any other services that it provides.

Who is a Candidate for USAA Auto Insurance?

Purchasing USAA auto insurance can be an excellent choice, but only a few candidates are suitable. To become a policyholder with the company, you must be affiliated in some way with the military. It is available to any member of the United States Armed Forces, including Navy and Army. You can be a retired, active, or honorably separated member to qualify for a policy with this company. The membership can also extend to candidates of commissioning programs and veterans. Along with such, former spouses, spouses, and children of USAA members can also be eligible for policies with the company.

Highlights of USAA Auto Insurance

While most insurance companies offer similar services, USAA does have some perks that other insurance companies don’t provide.

For example, customers can get accident forgiveness, which is a generous policy option. If you are a member with the company for five years and get into an at-fault accident (where you did something wrong to cause the accident), the company will forgive the accident and not increase your automotive insurance premiums. However, it should be noted that some states require this feature to be an add-on that must be paid for separately from the policy.

Along with such, you can get the standard auto policy, but you can also purchase an extended vehicle protection, boat insurance, RV insurance, and motorcycle insurance. If you’re a driver that stores your vehicle at the military base, you can also get a 15 percent discount on the comprehensive coverage, which is available in most states.

USAA earned high scores from the study for offering speedy claims service, customer service, and adjustment approval, as well. Therefore, if you need to call the company or start a claim, the process is likely to be quick and straightforward, which reduces your stress and helps you complete the process sooner.

Filing your claim with USAA is also straightforward. As a customer, you can call the claims hotline. However, you can also download and use the mobile app, which allows you to submit photos for the claim, report your claim, and review the status of your claim.

Pricing for USAA Auto Insurance

The company has three coverage tiers available that you can choose from, including the expanded, standard, and basic varieties.

It can be a little challenging to get a baseline comparison, so for this review, consider these specifications: The vehicle is a 2009 Honda Civic with 75,000 miles and is located in the Northeast USA. There are two registered drivers, both between the ages of 30 and 39, and both drivers have clean records.

Basic Coverage

With the vehicle/driver information from above, the quote is about $115 per month with the Basic Coverage option for two people. That coverage includes:

Comprehensive coverage, which includes a $500 deductible for each occurrence

Collision coverage, which includes a $500 deductible for each occurrence

Reimbursement for rental vehicles

Labor and towing costs

Underinsured/uninsured motorist coverage

Medical payment coverage

For most people, a low deductible is the most desirable thing, and the basic coverage plan offers that. Along with such, rental reimbursement and towing costs can also be a money-saver. This insurance policy is also likely to cover the minimum coverage required for your state, though you should check that out yourself to ensure that it is accurate.

However, property/bodily injury coverage amounts aren’t as high as other options, so you may want to consider another tier level.

Standard Coverage

For about $15 more dollars each month, you can upgrade to the Standard Coverage, which offers a higher liability for bodily injury and property. For most people, it is more than what your state requires for minimum insurance coverage, but it can be better to hold more than the minimum coverage, anyway.

Using the same vehicle/driver information as before, Standard Coverage was quoted at $130 each month. For this price and tier, you get:

Bodily injury liability, which totals $50,000 for each person and $100,000 for each accident

Property damage liability, which totals $50,000 per accident

Comprehensive coverage, which includes a $500 deductible for each occurrence

Collision coverage, which includes a $500 deductible for each occurrence

Reimbursement for rental vehicles

Labor and towing costs are covered

Underinsured/uninsured motorist coverage

Medical payment coverage

In a sense, everything remains the same, such as what you get for the price. You’re still going to get medical coverage payments, towing and labor costs, and rental reimbursement. You’re still covered if the other motorist doesn’t have insurance and causes an accident, and more. However, you also get much more liability coverage for body and property damages.

Expanded Coverage

If you desire even more coverage than the Basic or Standard offers, you have one more option. The Expanded Coverage offers increased protection for that same vehicle/driver combo as listed earlier. The quote received was for $140 per month, which is $10 more than the Standard Coverage tier. With the Extended Coverage, you get:

Bodily injury liability, which totals $100,000 per person with $300,000 per accident

Property damage liability, which totals $100,000 per accident

Comprehensive coverage, which includes a $500 deductible for each occurrence

Collision coverage, which includes a $500 deductible for each occurrence

Labor and towing costs are covered

Underinsured/uninsured motorist coverage

Medical payment coverage

All of the perks and features for each tier level stays the same, including medical payments, coverage for uninsured motorists, and towing and labor costs. However, the one caveat is that the Expanded Coverage does not include rental reimbursement charges. Therefore, if you must rent a car while yours is in the shop being fixed, you have to pay that out of pocket without getting any money from the insurance company.

However, you can easily see that USAA allows you to potentially triple the amount of coverage you receive beyond your state’s required legal minimums while the premium is only raised to a few extra cents per day. Therefore, it might make sense to consider the Standard or Expanded Coverage tiers so that you can be sure that your vehicle is covered regardless of how extensive the damages are.

It’s also important to understand that your quote and the price you agree to pay might be more or less than the numbers listed here. You should input your particular make and model, as well as the ages for all the drivers who might use the vehicle under the insurance coverage.

No Guarantees for Renewal

One of the caveats that were noticed during this review is that you aren’t guaranteed renewal each year. Therefore, you may purchase coverage for the year, but you must be reevaluated at the end of the calendar year (or whenever you set-up coverage). For example, if you purchase auto insurance in June of this year, next June, you must reapply for the same coverage.

If the prices rise, you cannot be grandfathered in at the lower price that you’ve been paying for the last year. Therefore, you cannot keep a lower price than what others pay for more than the calendar year. However, you might consider talking to a representative and ask them if they offer extended policy renewals. They might lock in rates for up to two years, though this is not a common practice. In fact, most people don’t even ask about it; just note that the company isn’t required to lock rates at any amount.

It is also a drawback because you may not qualify for the auto insurance again, especially if you have had an accident in the past year. The representatives look at your overall history with the company; if you’ve only been with them a short time, you may not get renewed at all, let alone at the same rates as before.

Is USAA the Right Choice for You?

If you are or were in the military (any status and any branch) or your spouse or parent was in the military, this insurance company might be the right choice for you. You could obtain a policy if you were part of the military service.

Many times, insurance companies are wary of providing coverage to military personnel or may have higher premiums and less coverage because of their policies and options.

This company delivers a total package because it offers great services to its customers and reasonable rates with low deductibles. In fact, it didn’t matter what coverage you desired (for the particular vehicle and driver information used for the purpose of the review). You still only paid the first $500 of the damages and the rest were covered by the insurance company.

The company has also consistently earned high rankings and awards from Consumer Reports and J.D. Power, among others. Plus, it holds an excellent reputation within the industry of insurance.

USAA is also highly convenient for people who want to bundle auto insurance with many other services, such as savings accounts, checking accounts, loans, and other property coverage (such as houses and apartments). You can learn more by visiting the company’s website directly, and you can also get a quote for yourself and your family.

Along with such, the company does make it easy to file a claim because you can download and use the mobile app or call a claims specialist. It’s also helpful to know that if you get into an accident that was your fault, the company can forgive the issue without raising your premiums. However, stipulations do apply, so you should talk to a representative about this feature if it is something you desire.

FAQ

General USAA Questions

This section covers basic questions about USAA as a company.

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What does USAA stand for?

USAA stands for the United Services Automobile Association. They have been in business since 1922.

Where is USAA located?

USAA is headquartered in San Antonio, Texas, which is also where the company was founded more than 96 years ago.

What is USAA insurance?

USAA Insurance is an insurance and banking company that’s open to members of the armed services and their descendants.

USAA Eligibility

USAA Eligibility has strict qualifications. We’ll answer your questions about who is eligible for USAA accounts.

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Who can join USAA?

USAA is open to active, retired, and honorably discharged officers and enlisted personnel of the US military and select family members.

How to become a USAA member?

You can become a USAA member by going to their website and applying for membership. They’ll check and see if you qualify and let you know the results.

Can I join USAA without being in the military?

You can join USAA without being in the military if you meet certain qualifications, like being an adult child of a USAA member or those who work for certain federal agencies.

Who qualifies for USAA?

USAA screens its members. You can qualify if you are a current, retired, or honorably discharged officer or enlisted personnel, currently enrolled in a service academy or ROTC, or a member of certain federal agencies.

How does USAA verify eligibility?

USAA uses a combination of photo identification and Military Verification to check eligibility for applicants.

Can my parents join USAA?

No, parents are not eligible family members to join USAA. You can see the full list of eligibility requirements above or on their website.

Can DOD civilians use USAA?

In many cases, yes. However, it depends on the role you have at the DoD. You should contact USAA to see if your specific role allows you membership.

Is USAA only for military?

No, there are lots of other people who can join USAA. That includes children of USAA members and people that work for specific federal agencies.

USAA Banking

We’ll cover the most popular questions about USAA Banking in this section.

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Is USAA a bank or credit union?

USAA is a bank and an insurance company. They are not a credit union, although they do have eligibility requirements for members.

How to deposit cash to USAA?

You can deposit cash to USAA by using one of their deposit-taking ATMs. You can find them in areas of high concentrations of USAA customers.

Does USAA use Zelle?

Yes, USAA allows you to use Zelle to send money to other people, including those that don’t have USAA accounts.

Where can I cash a USAA check?

You can cash a USAA check anywhere checks are cashed. The check comes from a bank, so any check cashing institution will accept it.

Where can I cash a USAA federal savings bank check?

The best place to cash a USAA bank check is at your bank. You can also deposit the check at an ATM, including a USAA ATM if you’re a USAA member.

What time in the morning does USAA deposit?

USAA doesn’t post deposit times publicly. It depends on multiple complex banking factors. However, your deposit will always be available by the date listed on your deposit confirmation.

Can I overdraft my USAA account?

USAA won’t charge you an overdraft fee if you overdraft by less than $5. However, more than that will incur a fee.

Is USAA a good bank?

Many people think so – they have favorable terms on loans and lines of credit and use their restricted customer base to ensure high quality customer service.

How to get a cashier's check from USAA?

The best way to get a cashier’s check from USAA is to log on to your account online. From there, you can select “Get an Official Check.” Just fill out the payment information, and your check will be delivered.

What time does USAA update accounts?

USAA doesn’t list information on what time they’ll update accounts. The time an account is updated can change based on multiple factors.

Where can I cash a USAA check without an account?

Any check-cashing institution or major retail store like Walmart will be able to cash your USAA checks.

Does USAA accept bitcoin?

USAA has bitcoin wallets available for all customers. You can access your bitcoin wallet by logging in to your account online.

Does USAA do first time home buyer loans?

Yes – they have a special first-time home buyer loan that allows you to put only 3% down and finance 97% of the value of the house.

Does USAA do payday advances?

In some cases – it depends on your employer. Your employer must allow cash advances out of future paychecks to get a payday advance from USAA.

Does USAA have overdraft fees?

Yes, USAA will issue an overdraft fee if you overdraft by more than $5 on your account.

Does USAA offer business checking?

Not at this time – you’ll need to look elsewhere for business checking and savings accounts, as USAA doesn’t provide these services.

How to add someone to my USAA checking account?

You can add someone to your USAA checking account by going to your account online. From there you’ll be able to add names to your account and/or update your martial status.

Is USAA good for VA loans?

Yes – USAA offers several different kinds of VA loans. They also have lots of information about the different loans available to help you choose the best one.

What time does USAA post ACH deposits?

USAA doesn’t publish the times they post ACH deposits. These deposits can post at different times depending on how many transactions the clearing house needs to process.

How to transfer money from one USAA member to another?

The easiest way to send money from one USAA member to another is to log into your account and use Zelle to send money.

How long does USAA hold checks?

That depends on a few different factors. Smaller checks will usually clear in 24-48 hours. However, larger checks over $5,000 may take up to 7 days to clear.

How long does a wire transfer take USAA?

Wire transfers using USAA will occur instantly. The money will be available at its destination shortly after you initiate the transfer.

Does USAA finance used cars?

Yes – USAA offers financing for new, used and classic cars. You can find out more information about the terms of their loans on their website.

USAA Auto Insurance

This section answers your questions about USAA Car Insurance.

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Does USAA cover rental cars?

In almost all cases, yes. Your primary USAA auto insurance will cover rental cars. However, you should check with USAA on the steps you should take to ensure that USAA is your primary insurer on the rental car.

What is covered under USAA roadside assistance?

USAA roadside assistance includes limited towing, jump-start, out of gas, and other, similar services.

What does USAA pay on settlements?

That depends on the specific situation. USAA will always try to make sure that they give a fair and accurate payment in any settlement.

Does USAA cover moving trucks?

Does USAA cover rental cars in Europe?

Yes – as long as you book your car through USAA’s rental car program and decline the coverage offered by the rental car company.

Does USAA offer gap insurance?

In most cases – USAA doesn’t offer gap insurance for leased vehicles, but it does offer gap insurance for purchased vehicles.

Does USAA insure rebuilt cars?

Sometimes – it depends on the specific situation and the laws in your state. You’ll need to contact USAA for more information.

Does USAA reimburse towing?

USAA will reimburse towing as long as you have towing and labor coverage or physical damage coverage for your policy.

Will USAA cover a cracked windshield?

USAA comprehensive policies will cover windshield repair and replacement. However, you may not be covered if you only have liability coverage.

Does USAA cover blown engine?

That depends on what caused the engine damage. USAA doesn’t cover your engine breaking due to normal wear and tear, but comprehensive policies will cover damage from accidents, vandalism, and more.

USAA Homeowners and Renters Insurance

We’ll cover questions about USAA Homeowners and Renters Insurance in this section.

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What does USAA renters insurance cover?

USAA renters insurance covers all of your belongings inside the house. This provides additional coverage so your possessions are covered, as most lease agreements don’t provide this coverage.

What does USAA homeowners insurance cover?

USAA Homeownerse insurance covers your home and belongings from loss in the vent of theft, fire, vandalism, and many weather-related events.

Other USAA Questions

This section covers questions that don’t fit neatly into our other categories. If you can’t find the answer you’re looking for, then check here.

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Does USAA offer health insurance?

USAA does offer health insurance, but they don’t do so directly. Instead, they underwrite other companies that offer health insurance.

Is USAA insurance good?

Yes, for many people USAA is the most cost-effective option for insurance in their area. However, you need to be able to qualify for USAA membership to get this coverage.

Does USAA have boat insurance?

Yes, USAA offers coverage for all kinds of watercraft, including boats, jet skis, and more. You’ll need a specialized policy if your boat is longer than 32 feet or valued at more than $150,000.

Does USAA have pet insurance?

USAA offers pet insurance through Embrace Pet Insurance. You can get a quote for a policy on USAA’s website.

Where do I find my USAA member number?

First locate your blue USAA card. There’s a 5-12 digit number on your card that acts as your membership number. You can also call 800-531-USAA to get your information if you can’t find your card.

Jordan Beaumont

Financial Guru

Jordan's work focuses on helping people reach their financial goals so they can spend more time with family and friends and less time worrying about their budget. After finishing college with a degree in Accounting and Communication, he realized that these are the most important things in life and that people shouldn’t miss out because of money.